Sales

Sales - US

North America - Gift Card Growth - 2028

Digital Gift Cards are expected to grow to 60% of all Gift Card Spending.
Market Potential: The US digital gift card market is forecasted to grow at 17.1% annually.**

North America

Closed Loop = $308B
eGift = $184.8B

includes US, Canada, Caribbean, Mexico

United States

Closed Loop = $267.3B
eGift = $160.38B

Canada

Closed Loop = $26B
eGift = $15.6B

By Retail Segment

Purchasers by Generational Segment

Shell $240M

*Credence Research and Napco Research 2023
**The Entrepreneurship Reporter

Shift Towards Digital Gift Cards: Industry Trends and Implications

Consumer Preference: Digital gift cards are becoming increasingly popular due to their convenience, speed, and security. A survey by Credence Research found that 75% of respondents preferred digital gift cards over physical ones for their ease of use and instant delivery. Their integration with e-commerce platforms and mobile wallets has further fueled their growth, with digital wallets accounting for 45% of all online transactions in 2023.
Emerging Digital Innovations:

Secure eGifts: BHN’s Visa® and Mastercard® eGift offerings enhance security and convenience.
Cross-Category Partnerships: Hallmark incorporates digital gift cards through InComm Payments.
Revenue Growth Opportunities: Reports highlight untapped potential in digital gift card adoption.
Fraud Mitigation: Digital cards act as key tools against retail scammers.

Fraud Mitigation and Rising Costs: Gift card fraud remains a significant issue, with $228 million in losses reported in the past year—a $100 million increase since 2020 (FTC). Fraud tactics, such as "gift card draining," exploit vulnerabilities in physical cards. Digital gift cards, however, offer a robust solution through encryption, multi-factor authentication, and real-time monitoring. Retailers also benefit from reduced overhead costs, such as storage and shipping, while providing consumers with instant, secure delivery options.

Direct Sales Alignment and Marketing

Sales Team Realignment: Reorganized sales team structure to focus on geographical relevance to Shell locations for improved efficiency and impact.
Enhanced Direct Marketing: Implemented targeted email campaigns and cadence to engage direct customers.
Trade Shows: Attended 3 industry trade shows in 2024.
Corporate Customer Campaigns: Launched an RPG-funded "Free Shipping" Holiday campaign to incentivize corporate customers and boost engagement.

Promotional and Partner Collaboration

Expanded Promotional Calendar: Increased Scrip promotional activities to drive incremental sales across categories.
Partner Collaboration: Established bi-weekly meetings with InComm and BHN to ensure consistent progress and communication.
Expanded Distribution: Secured additional InComm and BHN distribution locations for 2025, supported by new card production to meet expanded needs + variable card developed.

B2B Digital Initiatives

Digital Set-Up with BHN and InComm: Secured B2B digital platforms for a 2025 launch, completing necessary requirements for a seamless transition.
Casino Sales Recovery-Strategic Engagement: Engaged with casinos experiencing declining sales to identify and address key issues, including competitive challenges like BP’s increased discount to 4%.

Shell US 2024 Q4 Sales Update

B2B sales decline in Casino category - BP raised discount to 4%.
BHN & InComm sales decline, due to:

Store closures Best Buy/CVS Pharmacy.
B2B digital delayed pending additional egift function.

Dealer Sales down YOY.
While Shell's digital gift card program remains in its infancy and BHN/InComm have yet to launch Shell's digital offerings, the industry's pivot is toward digital in physical card sales.

2024 FY 2024 LE = $188,054,089 | 2023 FY Forecast = $206,469,494 | 2024 FY Forecast = $241,027,107

	2023 Total Actual	2024 Total Forecast	2024 Total LE
B2B Corporate	$32,975,346	$39,243,587	$30,977,021
B2B Reseller	$12,118,650	$13,701,292	$11,086,106
B2B Scrip	$10,549,558	$11,965,158	$10,129,356
B2B AAP	$103,555,908	$115,629,673	$91,128,560
B2B Total	$159,199,463	$180,539,709	$143,321,044
Consumer	$8,867,026	$9,737,435	$8,479,156
Dealer	$37,685,375	$43,540,588	$36,834,825
B2C Total	$46,552,401	$10,655,605	$45,313,981
Digital Total	$717,630	$7,209,375	$3,257,687
Total Shell	$206,469,494	$241,027,107	$188,054,089

Shell US 2025 Forecast

Expected boost from egift in BHN and InComm digital channels.

Expected boost from variable card in BHN and InComm.

	FY24 LE 2024 Total Actual	2025 FY Forecast	% Growth
B2B Corporate	$30,977,021	$31,906,332	3%
B2B Reseller	$11,086,106	$13,600,000	18%
B2B Scrip	$10,129,356	$10,965,158	8%
B2B AAP	$91,128,560	$94,128,560	3%
B2B Total	$143,321,044	$150,600,050	5%
Consumer	$8,479,156	$8,903,114	5%
Dealer	$36,834,825	$39,834,825	8%
B2C Total	$45,313,981	$45,737,939	1%
Digital Total	$3,257,687	$7,209,375	55%
Total Shell	$188,054,089	$206,547,364	9%

Anticipated growth coming from new card design.

Sales - Canada

Targeted Industry Campaigns

Continued focus on high-potential industries, including Gaming, Social Services, Automotive, Business Services, Advertising, Event Planning, and businesses with 200+ employees.
Developing customized strategies for each sector to maximize engagement and conversion.

Geographic Targeting

Enhanced efforts in key provinces: Quebec (QC), Ontario (ON), and Alberta (AB).
Utilizing localized marketing campaigns to address the unique needs of each region.

Direct Mail Campaigns

Launching a direct mail initiative promoting Shell Custom Card Products, specifically targeting car dealerships to drive adoption and engagement.

Resource Reallocation for Pipeline Growth

Reallocating resources to focus on Canadian Direct and Reseller business opportunities, resulting in improved pipeline health and increased lead generation.

Enhanced Reseller and Promotional Activities

Expanded engagement and sales through partnerships with CAA Clubs across Canada.
Increased activity in the Scrip promotional calendar to generate additional sales opportunities.

Additional Strategic Initiatives - B2B Portal Development

Currently scoping the development of a dedicated B2B portal to streamline operations and improve the customer experience for corporate clients.

Shell Canada 2024 Q4 Sales Update

	2023 Total Actual	2024 Total Forecast	2024 Total LE
B2B Corporate	$3,152,916	$2,337,085	$3,840,766
B2B Reseller	$332,500	$450,187	$349,250
B2B Scrip	$1,942,375	$2,194,945	$1,919,100
B2B AAP	$8,424,225	$10,485,765	$7,834,175
B2B Total	$13,852,016	$15,467,982	$13,943,291
Consumer	$124,200	$122,330	$127,225
Dealer	$17,021,540	$15,894,853	$18,506,321
B2C Total	$17,145,740	$16,017,183	$18,633,546
Total Shell	$30,997,756	$31,485,165	$32,576,837

BHN Sales:

Loblaws - strategic partnership with ESSO.
Sobey's POS Radiant issue.

Dealer sales strengthened.
We anticipate substantial growth in Shell Canada's gift card program with the future launch of egift in 2025.

Shell Canada 2025 Forecast

	FY24 LE 2024 Total Actual	2025 FY Forecast	% Growth
B2B Corporate	$3,840,766	$10,032,804	62%
B2B Reseller	$349,250	$384,175	9%
B2B Scrip	$1,919,100	$2,111,010	9%
B2B AAP	$7,834,175	$8,225,884	5%
InComm	$0	$1,500,000	100%
B2B Total	$13,943,291	$22,253,873	37%
Consumer	$127,225	$133,586	5%
Digital	$0	$250,000	100%
Dealer	$18,506,321	$19,431,637	5%
B2C Total	$18,633,546	$19,815,223	6%
Total Shell	$32,576,837	$42,069,096	23%

Givex transition Q2.
Expected growth from launching egift + CAA.

Launch of InComm with Givex transition.

Launch of egift consumer with Givex.

Trends | Market Research

US Regulatory Changes
Incentive Market Industry News

New Regulatory Changes in the US

New Jersey Gift Card Regulations: Recent legislative changes in New Jersey mandate the registration of gift cards and the escheatment of unused balances after two years. These changes require retailers to update point-of-sale systems and enhance compliance measures, posing operational challenges for businesses.
Consumer Protection Laws in New York and Maryland:

New York: Enacted legislation preventing gift card values from expiring within nine years. Additionally, gift cards and gift certificates cannot decline in value due to fees and must be redeemable for cash if the remaining value is less than $5. The law also requires businesses to disclose all terms and conditions associated with gift cards upfront, providing consumers with greater transparency and confidence in their purchases. (New York State Consumer Protection)
Maryland: Passed a law requiring secure packaging to prevent gift card draining scams, addressing fraud concerns and potentially setting a nationwide standard.

Enhanced Consumer Confidence and Value: These legislative measures aim to improve the security and usability of gift cards. For companies leveraging gift cards as employee incentives or rewards, these protections make the cards more secure, reliable, and valuable. Employees are more likely to use their rewards effectively, creating a positive and memorable experience.

Incentive Market Industry News & Trends

Significant Market Investment: According to the Incentive Federation, 84% of U.S. businesses collectively spend $176 billion annually on award points, gift cards, trips, merchandise, and experiential rewards to engage sales staff, employees, channel partners, and customers.
Budget Growth Outpaced by Inflation: Budgets for gift cards, merchandise, and event gifting are up 37% in 2024, with growth projected through 2025 (Industry Outlook 2024). However, inflation often offsets these increases, limiting real growth.
Eroding Value of Gift Cards: Rising costs constrain the impact of gift cards. A modest $30 per-person increase in 2024 fails to counter inflation, reducing their purchasing power and effectiveness.
Tough Trade-offs: To manage rising costs, incentive programs are shortening durations, reducing attendees, or adopting tiered structures. These adjustments often dilute program impact and value for recipients.